DELIVERING ON RECIPROCAL TRADE: Today, President Donald J. Trump signed a trade agreement that will provide Americans with unprecedented levels of market access in Malaysia. The United States and Malaysia reached an Agreement on Reciprocal Trade, a legally binding agreement, that will provide American exporters with access to Malaysia’s market while bolstering U.S. national and economic security.
Key terms of the U.S.-Malaysia Agreement on Reciprocal Trade include:
- Tariffs:
- Malaysia has committed to provide significant preferential market access for U.S. products exported to Malaysia across goods sectors, including chemicals, machinery and electrical equipment, metals, passenger vehicles, dairy, horticultural products, poultry, pork, rice, and fuel ethanol, which will create commercially meaningful market access opportunities for a significant range of U.S. exports, supporting high-quality American jobs.
- The United States will maintain a 19 percent reciprocal tariff rate for imports of Malaysia except for identified products from the list set out in Annex III to Executive Order 14346 of September 5, 2025, Potential Tariff Adjustments for Aligned Partners, which will receive a zero percent reciprocal tariff rate.
- Breaking Down Non-Tariff Barriers for U.S. Industrial Exports: Malaysia has committed to address a range of non-tariff barriers, including by: (1) accepting U.S. manufactured vehicles built to U.S. motor vehicle safety and emissions standards; (2) accepting U.S. Food and Drug Administration certificates and prior marketing authorizations for medical devices and pharmaceuticals; (3) streamlining import licenses for U.S. alloy steel and pipe products, and steel-containing goods; and (4) removing restrictions on imports of remanufactured goods.
- Breaking Down Non-Tariff Barriers for U.S. Agricultural Exports: Malaysia has committed to address a range of non-tariff barriers, including through: (1) recognition of the U.S. food safety system for U.S. meat, poultry, and dairy products; (2) streamlined halal certification of U.S. food and agricultural products; (3) opening market access for U.S. sorghum to Malaysia; and (4) adoption of regionalization approaches to facilitate U.S. exports of pork and poultry.
- Opening Doors for Critical Minerals and Rare Earths Partnerships: Malaysia has committed to the expedient development of its critical minerals and rare earths sectors in partnership with U.S. companies, including by: (1) refraining from banning, or imposing quotas on, exports to the United States of critical minerals or rare earths elements; (2) granting extended operating licenses so that businesses have the certainty to increase production capacity; and (3) ensuring that no restrictions are imposed on the sale of rare earth magnets to U.S. companies.
- Removing Barriers for Digital Trade, Services, and Investment: Malaysia has made comprehensive commitments on digital trade, services, and investment. Malaysia has committed to refrain from imposing digital services taxes or requiring U.S. social media platforms and online service providers to pay into Malaysia’s domestic fund; ensure the transfer of data across trusted borders for the conduct of business; support a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization; and remove broadcasting restrictions on U.S. programming.
- Geographical Indications (GIs) and Market Access: Malaysia has committed to groundbreaking provisions that will preserve current and future U.S. market access for U.S. cheese and meat producers who rely on the use of common names. This includes ensuring that market access will not be restricted due to the mere use of certain cheese and meat terms. Malaysia has also committed to only protect legitimate GIs and to robust standards for transparency and fairness regarding the protection of GIs.
- Protecting and Enforcing Intellectual Property: Malaysia has made commitments that will benefit American innovators and creators by enhancing intellectual property protection and prioritizing enforcement against intellectual property theft. This includes joining and fully implementing key international intellectual property treaties and combatting notorious markets for counterfeiting and piracy.
- Economic Security Alignment: The United States and Malaysia are committed to strengthening cooperation to increase supply chain resilience. This includes taking complementary actions to address unfair trade policies of third parties, cooperating on export controls and investment security, and addressing duty evasion.
- Strengthening Labor Protections: Malaysia has committed to protecting internationally recognized labor rights, including by prohibiting the importation of goods made by forced labor, amending its laws to strengthen labor rights protections, and strengthening the enforcement of its labor laws, including by addressing violations in sectors with a high risk of forced labor and child labor.
- Strengthening Environmental Enforcement: Malaysia has committed to adopt and maintain high levels of environmental protection and to effectively enforce its environmental laws.
- Confronting State-Owned Enterprises and Subsidies: Malaysia has committed to address the distortionary behaviors of its state-owned enterprises when engaging in commercial activities and address distortions caused by domestic manufacturing subsidies.
- Addressing Steel Excess Capacity: Malaysia has committed to join the Global Forum on Steel Excess Capacity and take effective actions to address global excess capacity in the steel sector and its impacts.
- Notching Commercial Deals: The United States and Malaysia take note of commercial deals, including in the areas of aerospace, energy, telecommunications, and semiconductors, which will further increase U.S. exports to Malaysia.
THE PROSPEROUS PATH FORWARD: In the coming weeks, the United States and Malaysia will undertake applicable domestic procedures in advance of the Agreement entering into force, in order to lock in benefits for American businesses and workers.
- The United States currently runs its fourteenth-largest goods trade deficit with Malaysia. The U.S. total goods trade with Malaysia was $24.9 billion in 2024.
- President Trump has delivered a forward-looking and tough trade deal that will benefit American workers, exporters, farmers, small businesses, and digital innovators—this deal is what winning looks and will feel like for all Americans.
LIBERATING AMERICA FROM UNFAIR TRADE PRACTICES: Since Day One, President Trump challenged the assumption that American workers and businesses must tolerate unfair trade practices that have disadvantaged them for decades and contributed to our historic trade deficit.
- On April 2, President Trump declared a national emergency in response to the large and persistent U.S. goods trade deficit caused by a lack of reciprocity in our bilateral trade relationships, unfair tariff and non-tariff barriers, and U.S. trading partners’ economic policies that suppress domestic wages and consumption.
- President Trump continues to advance the interests of the American people by removing tariff and non-tariff barriers and expanding market access for American exporters.
- Today’s announcement shows that America can defend its domestic production while obtaining expansive market access with our trading partners.
